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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by Nobody: 12:37pm On Nov 26, 2020 |
maishai: Monopoly might be a zero sum game but wealth creation isn't. 1 Like |
Re: Treasury Bills In Nigeria by Grupo(m): 12:38pm On Nov 26, 2020 |
awesomeJ: If you highlight their interest rates, also highlight their inflation rates. Official inflation rate can't be circa 17% and you are defending negative interest rates. An intelligent thing to do would be to craft local policies that are local to our specific issues instead of throwing lazy statements like "interest rates are also negative in Europe." 6 Likes |
Re: Treasury Bills In Nigeria by DexterousOne(m): 12:40pm On Nov 26, 2020 |
maishai:Hmmm... Interesting I get your point But then I hope the bolded is not an indirect way of blaming the colonialists or foreign powers though Just so we are clear |
Re: Treasury Bills In Nigeria by Nobody: 12:42pm On Nov 26, 2020 |
ChybuzzDD:Only an idiot will read my comments and assume that I am a student waiting for ASUU. I hope you are not one Point of correction, I ‘attack’ stupid ideas and suggestions asking people to throw away their hard earned cash on yahoo schemes and investments in what they know nothing about. Some people are very risk averse and are better off keeping their Naira in low yielding investments. Even if inflation will take some. Wetin man go do? Simply make more cash in whatever your hustle is and sleep well at night. If you can invest in international funds/markets, then do so. If you must do business with your money, only do ‘business’ in a sector you are experienced in. If you must do real estate, be sure of location and your tenants. And if you must do NSE, better know what you are doing and be ready to cry as there are more losers than winners. 5 Likes |
Re: Treasury Bills In Nigeria by NL1960: 12:46pm On Nov 26, 2020 |
DexterousOne: What would you have done differently?. 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 12:47pm On Nov 26, 2020 |
jajeri3216:You get my point.. |
Re: Treasury Bills In Nigeria by DexterousOne(m): 12:48pm On Nov 26, 2020 |
NL1960: Good question |
Re: Treasury Bills In Nigeria by awesomeJ(m): 12:54pm On Nov 26, 2020 |
DexterousOne: No going back and forth needed. You need to argue smartly. You said someone isn't doing a good job, simply tell us how you would do better, and help us see the economic sense in your suggestion. You said him pushing a low risk free rate is foolish. I said it's not, as a matter of fact, only an economic illiterate would think it is. How can you even think it. Don't you understand the basics of Fiat currecies. Any secondary school kid knows enough to realize that a thing is only valuable when it's limited in supply. Or you think it's just the yellow colour that makes gold valuable? Why is Venezuelan Bolivar worthless? no back and forth needed. Tell us in simple terms how high risk free rates is smart? If you can't, then you should realize that you're probably like someone with 100k in his account, calling Bill Gates broke. 3 Likes |
Re: Treasury Bills In Nigeria by DexterousOne(m): 12:56pm On Nov 26, 2020 |
NL1960: You see, prior to the Buhari presidency Those of us who knew, know that back then, we had less than say 20 to 25 difference between what we now call "official rate" and the black market rates The gap was not as shameful and atrocious as it is today When you create avenues for round tripping and corruption, as human beings, many are prone to exploit it This said As CBN governor I would have ensured that these multiple exchange rates regimes we have (at some point we had over six) wont be a thing in the first place Exchange rates convergence is what we need to salvage the naira a lil bit You cannot be selling the same product (the USD in this case) at different rates to different markets , when you cannot even ensure that the markets are segregated from each other That's dumb and thats STUPID Ahib months ago mentioned here how Nigerians (shameless ones) are conniving with fake unis abroad and other shady entities to route USD at "the ideal rate ; then routing it back to sell to Aboki And Sanusi himself saying that if he wants to make N100m effortlessly or so , all he needed is a couple of phone calls Tell me honestly, What is the sense of having this kind of exchange rate regime? 4 Likes |
Re: Treasury Bills In Nigeria by Nobody: 12:56pm On Nov 26, 2020 |
Lazyyouth4u: I know you know, but this time, I'm here as a moderator. One thing we learn in school is there are no right or wrong answers. Let's put to rest the devaluation, tb, interest rates argument with the below. [b]When a government devalues its currency, it is often because the interaction of market forces and policy decisions has made the currency's fixed exchange rate untenable. In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate. When a country is unable or unwilling to do so, then it must devalue its currency to a level that it is able and willing to support with its foreign exchange reserves. A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of a devaluation. First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country's exports and decrease imports, and may therefore help to reduce the current account deficit. There are other policy issues that might lead a country to change its fixed exchange rate. For example, rather than implementing unpopular fiscal spending policies, a government might try to use devaluation to boost aggregate demand in the economy in an effort to fight unemployment. Revaluation, which makes a currency more expensive, might be undertaken in an effort to reduce a current account surplus, where exports exceed imports, or to attempt to contain inflationary pressures. Effects of Devaluation A significant danger is that by increasing the price of imports and stimulating greater demand for domestic products, devaluation can aggravate inflation. If this happens, the government may have to raise interest rates to control inflation, but at the cost of slower economic growth. Another risk of devaluation is psychological. To the extent that devaluation is viewed as a sign of economic weakness, the creditworthiness of the nation may be jeopardized. Thus, devaluation may dampen investor confidence in the country's economy and hurt the country's ability to secure foreign investment. Another possible consequence is a round of successive devaluations. For instance, trading partners may become concerned that a devaluation might negatively affect their own export industries. Neighboring countries might devalue their own currencies to offset the effects of their trading partner's devaluation. Such "beggar thy neighbor" policies tend to exacerbate economic difficulties by creating instability in broader financial market [/b] 1 Like |
Re: Treasury Bills In Nigeria by NL1960: 1:08pm On Nov 26, 2020 |
DexterousOne: So answer the question now as the question was made in your post. |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:09pm On Nov 26, 2020 |
Grupo: So, in your mind, when your temperature is high, that's when you should go sit in the sun right? When you know enough, you will realize that the better option would be to rather sit in an air conditioned room. Please help redeem your ignoramus status my explaining how high T-bills rate will bring down inflation. |
Re: Treasury Bills In Nigeria by Druss(m): 1:11pm On Nov 26, 2020 |
awesomeJ: Is he going after the banks? Using their cards and procuring online items indicates that they do not agree with the CBN governor. 1 Like |
Re: Treasury Bills In Nigeria by DexterousOne(m): 1:12pm On Nov 26, 2020 |
awesomeJ: So in your economics class You were told that in a high inflationary regime, knocking the interest rate to below 1% is the wise thing to do abi ? Can you even read what you are writing ? Like some here have told you You seem to be an idealist |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:17pm On Nov 26, 2020 |
DexterousOne: You have not said anything on the subject. Someone is willing to pay 480 to buy dollars, you think it's CBN fault how? I sometimes overpay for things, how will it make any sense to blame anyone for that decision. the CBN trades dollars with the FG at 379, on the FMDQ at between c. 386, SMIS 386, BDCs at 386, what disparity are you talking about. Focus on the point here: WHAT WOULD YOU DO BETTER? How would you sell FX. speak in specifics! 1 Like |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:18pm On Nov 26, 2020 |
Druss: Last online payment I made was charged at 391? How much does your bank charge? Meanwhile, If any bank sells PTA/BTA, school fees, or process your form M above 386, you can report them. |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:34pm On Nov 26, 2020 |
DexterousOne: When you learn enough, you'll know that! Do you even know why the correlation between inflation and yield is ever discussed? You certainly don't! You just heard somewhere that yields should be higher than inflation rates, and you think ignorantly, that it means it's for the purpose of fighting the inflation? that's grossly ignorant! THE REASON INFLATION US MENTIONED AS REGARDS YIELDS IS THAT, people wouldn't find your instrument attractive if your yield is below inflation rate. Nothing more. So whether it's foreign or local investors you're trying to attract, you should keep your yield above inflation rates to make it interesting to them. There's no economic theory that says to use high yields to fight high inflation, as a matter of fact, common sense and basic economics will help you know when there's 1bn in money supply available to chase 1million kilos of corn, the price of corn prints at 1000 per kilo. If your ignorant economic team increases money supply to 1.2bn by offering T-bills at 20%, price rises to 1,200 per kilo. 20% inflation. but when your money stay at N1bn because you're only printing new money at 0.02% per annum, price remains at 1000. 0% inflation. Bring up a counter analysis, let's see if it makes any sense. 2 Likes |
Re: Treasury Bills In Nigeria by Cyberknight: 1:34pm On Nov 26, 2020 |
DexterousOne: Emefiele is not as clueless as he's being painted. It's his boss who is. 2 Likes |
Re: Treasury Bills In Nigeria by DexterousOne(m): 1:35pm On Nov 26, 2020 |
awesomeJ: Like I said I wont go back and forth with you |
Re: Treasury Bills In Nigeria by Nobody: 1:37pm On Nov 26, 2020 |
DexterousOne:To be fair to Emefiele, what he’s dealing with is not what you will learn in an Economics class. Normally, high inflation will occur when the economy is really heating up, jobs are being created and people have lots of cash and driving up asset prices. The sensible thing to do will be to just raise interest rates to slow things down. But in our case, the economy is not growing, there’s a lot of Naira floating around, cost side inflation is high mainly from exchange rate and structural issues. There are no jobs and companies are not expanding because they can just invest in Tbills and make returns with little stress. High Tbill rates that he was trying to use to defend the Naira o. The guy has decided to pick his battle and focus on growing the economy with low rates; with the hope that the structural issues will take care of themselves. Also hoping that heating up the economy will create more products that can be consumed domestically and exported to reduce the pressure on our reserves. It may work and it may fail badly but he’s trying his best. 10 Likes |
Re: Treasury Bills In Nigeria by DexterousOne(m): 1:37pm On Nov 26, 2020 |
Cyberknight: You may actually have a point But Emefiele still bears some of the blame I wonder what goes through his head when he makes certain decisions 1 Like |
Re: Treasury Bills In Nigeria by DexterousOne(m): 1:38pm On Nov 26, 2020 |
Lazyyouth4u: I just mentioned economics class for reference purposes Sometimes you have to tweak a few things in the face of reality However This man Emefiele Like I said before Does not know what he is doing |
Re: Treasury Bills In Nigeria by DexterousOne(m): 1:43pm On Nov 26, 2020 |
Lazyyouth4u: The risk premium in this country is VERY VERY HIGH Most business startups will fail in Nigeria because of that Sometimes its not because the business owners are inept Its just the system they find themselves in So in a country with this kind of set up You are forcing the rates down, and even penalizing the banks who refuse to go down that act of folly of being forced to give sub prime loans Now when those businesses fail And the loan book begin to explode The same CBN will tell the banks to make FULL PROVISIONS You see how confused the man is? The focus should be on making the business environment more friendly (which in fairness to him, the executive has more role to play in that aspect ) With the environment better, the risk reduces and then you can incentivise the system by juicing it up with liquidity Not this cowboy behaviour we are getting 3 Likes |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:46pm On Nov 26, 2020 |
DexterousOne: You can't go back and forth when you've not even gone forth. You're there calling someone who's obviously miles ahead of you in intelligence a goat, and we simply asked you to say what you would do better than him. You couldn't go even one forth to mention just one thing. You're there saying back and forth. Silly excuse from someone making a baseless claim. There's nothing wrong in admitting to making silly arguments. Admit, learn, and move forward, it doesn't reduce you. 1 Like |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:49pm On Nov 26, 2020 |
DexterousOne: This is just a vague comment that's isn't.. The way to comment is: Mention the specific decision, say how it's bad and what you would do better. |
Re: Treasury Bills In Nigeria by awesomeJ(m): 1:54pm On Nov 26, 2020 |
DexterousOne: You shouldn't comment on what you don't know! Which bank tells you it's being forced to do sub prime lending? You don't have to say things in ignorance. There's not been anytime when a bank gets told whom to lend to. Regulations are often on what to do with customers' deposits. the banks used to buy bonds and T-bills with them before, cbn says NO!, if you're not using them to fund credit, we'll rather keep them. How does that translate to forcing any bank to lend? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 1:56pm On Nov 26, 2020 |
Lazyyouth4u: I disagree at there more losers than winners. We have more gamblers than investors, gamblers are expected to lose while investors will always win on the long run. 5 Likes 1 Share |
Re: Treasury Bills In Nigeria by DexterousOne(m): 2:06pm On Nov 26, 2020 |
awesomeJ:Smh I said I wasnt going to respond to you I'm really resisting the urge to You are obviously ignorant as to how banking works And how the CBN is muzzling the banks into lending by fire by force |
Re: Treasury Bills In Nigeria by Cyberknight: 2:07pm On Nov 26, 2020 |
DexterousOne: What goes through his head is how to keep his job and prevent his head from being chopped off by the inhabitants of the Aso Rock bubble. Nothing more, nothing less. 1 Like |
Re: Treasury Bills In Nigeria by DexterousOne(m): 2:10pm On Nov 26, 2020 |
Cyberknight: Well You have a point But still That does not absolve him from blame He is NOT doing a good job as a central bank governor ans should do better 1 Like |
Re: Treasury Bills In Nigeria by DexterousOne(m): 2:12pm On Nov 26, 2020 |
emmanuelewumi: True that |
Re: Treasury Bills In Nigeria by awesomeJ(m): 2:21pm On Nov 26, 2020 |
DexterousOne: So this is how to argue? You read how I stated specifically, what the regulation around the LDR entails, and instead stating a fact that supports your claim of CBN forcing banks to lend, you're there talking urge, how does urge convince anyone reading your post that you made any sense? Dexterous one said CBN is forcing banks to lend. AwesomeJ said no they aren't, they are only preventing them from using customers deposits to buy bonds. Dexterous one said he's having a urge, therefore cbn is still forcing banks to lend. What kind of argument is that? 3 Likes |
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